Business Intellignece the Next Generation of Innovation
Transcript of Business Intellignece the Next Generation of Innovation
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Business Intelligence: The NextGeneration of Innovation
Kurt Schlegel
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Business Intelligence Applications
Enterprise Applications (ERP, SCM and CRM)
Server and Storage Technologies (Virtualization)
Legacy Application Modernization
Security Technologies
Technical Infrastructure
Networking, Voice and Data Communications (VoIP)
Collaboration Technologies
Document Management
Service-Oriented Technologies (SOA and SOBA)
BI is the Most Important CIO Priority for 3 Years Running
**New question for 2007
To what extent will each of the followingtechnologies be a Top 5 priority for you in 2008?
11.20%
8.02%
8.45%5.79%
8.53%
4.67%
6.83%
7.75%
7.91%
6.71%
2008Increase*
1
2
34
5
6
7
8
9
10
Rank2008
1
2
53
6
8
4
10
9
7
Rank2007
1
**
910
2
12
8
4
**
6
Rank2006
Source: 2008 Gartner Executive Programs CIO Survey, January 10, 2008
2008 CIO Technology Priorities
* Unweighted average budget change
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Key Issues
1. How can BI evolve beyond reporting measuresto making great decisions?
2. How can IT leaders drive broader BI adoption?
3. How can the scope of BI initiatives move fromenterprise to industry wide?
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How to Build a Skyscraper and Why Does It Matter to BI?
Burj Dubai (YE08)Dubai
164 stories
Flatiron (1901)New York22 Stories
Monadnock (1891)Chicago
17 Stories
http://en.wikipedia.org/wiki/Image:Flatiron_crop_20040522_114306_1.jpghttp://upload.wikimedia.org/wikipedia/en/b/be/Burj_Dubai.jpg -
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Todays BI Strategy: Urban Sprawl
BI focuses too much on Bottom Up reporting of performance measures. And the measures are not what your CEO or senior managers care about. Projects are built with little governance or alignment with corporate strategy.
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Portfolio of BI and PerformanceManagement Applications Expand
Result: Smarter Decisions
EnterpriseGoals
BusinessFunctions
BusinessProcess
StrategyDriven
Analyst/Management
Driven
ProcessDriven
Start withCorporateStrategy
Align KeyPerformanceIndicators (KPI)at Each Level
Focus on Root
Cause Analysisdown to theprocess level
The BI and Performance Management Continuum: DecisionMaking Becomes a Core Competency
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Key Steps to Evolve BI Beyond ReportingMeasures to Managing Decisions
IT DeliversReports & Dashboards
DecisionMakingas a corecompetency
Business Vision& Sponsorship Data Lineage,
Governance and Quality
CostQuality
Tradeoff Analysis
Linking Planning,Reporting & Analysis
Experimental Design
Cultural Change
Skills Development
New CapabilitiesModeling
Forecasting,Simulation,Optimization
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A Text Book Example: The Oakland As
"Moneyball: The Art of Winning anUnfair Game" written by Michael Lewis
- Account of Billy Bean, manager of theOakland Athletics baseball team
Used BI to manage processes
(e.g., scoring runs) and predictperformance (e.g., games won)
- Used "on base %" instead of "batting average" to draft players
- History showed, in the data, that the old"gut feelings" and adages were wrong
- Focused on avoiding outs instead of advancing the runner a major change to the business process of baseball.
Result: Able to win 90+ games per year withone-third the payroll of the New York Yankees
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Key Issues
1. How can BI evolve beyond reporting measuresto making great decisions?
2. How can IT leaders drive broader BI adoption?
3. How can the scope of BI initiatives move fromenterprise to industry wide?
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Driving BI Adoption
EmpoweringUsers With BI
Organizational EfficacyRequires the Proper Balance
Optimizing BusinessProcess With BI
BI Continuum
Decide ManageMeasure Optimize InnovateDiscover
Future Scenarios: Wide Ranging From Human- to Machine-Driven
Orchestration Business rules Predictive modeling
Search Visualization Empowerment
Alignment Transparency Collaboration
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Interactive Visualization
Source: Advizor Solutions
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BI Integrated with Search
User Interaction
Style withInformation
Structure, Qualification,Control of Information
Low
High
General toSpecific
AnalysisCentric
BI Content Search
Ad hoc query
ContentAnalytics
Specific toGeneral
Reporting/Dashboards
SearchCentric
Enterprise Search
Explore Data DimensionsAuto- Queries
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Unicredit (HypoVerinsbank AG):Accelerating Decision Processes
Metadata Management
Interface Layer Staging Area OperationalData StoreService -Layer Risk Models Data Marts
Reporting &Analysis
75 sources 370 jobs
127 labels
~ 2,000 columns
55 labels
1,660 columns
10 facts
48 dimensions
120 reports
150 users
operationalsystems
externaldatasources
Extracts
t r a nsfo rm a t i on
validated, integratedhistorical data
modelparameter
multidimensionaldata structure
& reporting views
HTMLPDFCSVXMLXLS
Browser MailFTP
SchedulingAlerting
E/Rmodel
risk & pricingmodels
businessrule engine
businessrules
Load
s t a r
m o d e l 0 20 40 60 80
100
1st 2nd 3rd 4th
Data Modeler ETL
Visual Rules
BI Platform
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Information Buffet: EuroDisney Challenge: Optimize customer satisfaction and reduce expenses Solution: Define KPIs, predict, publish and alert Results: +15% customer satisfaction; Higher staff efficiency Success factors: Distributed decisions aligned with business goals Lessons learned: Cultural change takes years, but it's worth it
http://images.google.com/imgres?imgurl=http://www.skywaysecurity.com/images/point_of_sale_image.jpg&imgrefurl=http://www.skywaysecurity.com/point_of_sale_DVR_integration.cfm&h=275&w=248&sz=12&hl=en&start=3&tbnid=37782U9t0828xM:&tbnh=114&tbnw=103&prev=/images%3Fq%3Dcash%2Bregister%26svnum%3D100%26hl%3Den%26lr%3D%26safe%3Doff%26rls%3Dcom.microsoft:en-US%26sa%3DN -
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Key Issues
1. How can BI evolve beyond reporting measuresto making great decisions?
2. How can IT leaders drive broader BI adoption?
3. How can the scope of BI initiatives move fromenterprise to industry wide?
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Five Major Mutually ReinforcingDiscontinuities
Discontinuities Affect Business Unit Independence Vendor Balance of Power,
Distribution, Marketing andBusiness Models
Implementation Alternatives Rogue End-User Investments Governance, Authority and
Control Budgets Architectural Models
Softwareas a
Service
GlobalClassOpenSource
Web 2.0 Consum-erization
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Understand the Trade-Offs That SaaSPresents
Upsides- Pay for what you use- From an operational budget- Basic functionality that you
really need, not bells andwhistles that you might need
- No operational managementworries
- No infrastructureoverhead/management
- Medium-term lower TCO- Faster implementations- Easier integration*
Downsides- No asset value- Less central management of
the application portfolio- More basic functionality*
- Vendor management (incl.oversight of their operationalmanagement)
- Security concerns- Longer-term TCO
uncertainties- "OP2OD" (On Premise to OnDemand) integration
* Sometimes real, sometimes perceived * Theoretically; particularly of SaaS to SaaSapplications written with open APIs
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BI as a Service (BIaaS Not a Great name)Input: Detailed
data is provided toa trusted info
aggregator
BI CapabilitiesCombined with
Vertically SpecificInformation Servies
Neilsen
IMS
D&B
Thomson Reuters
Google
Catalina Marketing
NPD
IRI
Comscore
LoanPerformance
LexisNexis
Skytide
Output: Enriched
data fed back to DW
Dimensional slicing & dicing
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Thomson Healthcare
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3 Recommendations for 3 Innovations
BI initiatives are overly focused on reportingmeasures.Craft a BI strategy that makes decision making a core
competency across your company.
BI is too hard for 80% of users.- Craft a BI strategy that embraces emerging technologies
and embeds BI into business processes
BI initiatives lack an external perspective- Embrace the combination of BI capabilities and industry
specific information providers